Dividend Increases: July 29-August 2, 2019 (Part 1: Industrials, Materials, And Financials Sectors)

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Includes: ABR, BBT, CBOE, CSL, DOV, ITW, MSCI, NEU, RGA, SMG, SSB
by: FerdiS
Summary

This article provides a weekly summary of dividend increase announcements.

Part 1 covers dividend increases in the Industrials, Materials, and Financials sectors. Part 2 will cover the remaining sectors.

As a bonus, I include ex-dividend dates for the next two weeks.

Monitoring dividend increases for stocks on my watch list helps me to identify candidates for further analysis. Companies that regularly increase their dividends show confidence in the potential growth of future earnings.

I look for dividend increase announcements for stocks in the CCC List, but I use several screens to limit the number of stocks to monitor:

  • Dividend Yield ≥ 1.0%
  • Market cap ≥ $1 billion
  • No stocks that are being acquired
  • No Over-The-Counter or Pink Sheet stocks

In the last week, 21 companies that declared dividend increases passed these screens.

The table below presents a summary of increases announced for stocks in the Industrials, Materials, and Financials sectors. Part 2 will cover the remaining sectors.

The table is sorted by the percentage increase, %Incr. Dividends are annualized and in US$, unless otherwise indicated. Yield is the new dividend yield for the market close Price on the date listed. Yrs are years of consecutive dividend increases, while 5-yr DGR is the compound annual growth rate of the dividend over a 5-year period. 1-yr %Incr is the percentage increase from the year-ago dividend. (Some companies increase their dividends more than once a year, so this puts the most recent dividend increase in context).

Summary of Dividend Increases: July 29-August 2, 2019

Previous Post: Dividend Increases: July 22-26, 2019

The highlighted stock is one I own in my portfolio.

Carlisle (CSL)

Founded in 1917 and headquartered in Charlotte, North Carolina, CSL operates as a diversified manufacturing company in the United States and internationally. CSL designs, manufactures and markets a range of products for various niche markets, including commercial roofing, energy, agriculture, mining, construction, aerospace and defense electronics, medical technology, transportation, and healthcare.

Recently, CSL increased its quarterly dividend by 25.00% to 50¢ per share. The first payment will be on September 3 to shareholders of record on August 20. The ex-dividend date is August 19.

MSCI (MSCI)

MSCI, together with its subsidiaries, provides investment decision support tools to clients to manage their investment processes. The company’s Index segment provides equity indexes used in index-linked portfolio management and performance benchmarking. Other segments include Analytics, ESG, and Real Estate. MSCI was founded in 1998 and is headquartered in New York, New York.

The board of directors of MSCI has declared a quarterly dividend of 68¢ per share. The new dividend is 17.24% above the prior dividend of 58¢ per share. The dividend is payable on August 30 to shareholders of record at the close of business on August 16.

Reinsurance Group of America (RGA)

Founded in 1973 and headquartered in Chesterfield, Missouri, RGA is engaged in insurance and reinsurance businesses in the United States and internationally. The company offers individual and group life and health insurance products, as well as asset-intensive and financial reinsurance products. RGA also provides reinsurance for investment-related risks.

The company's board of directors approved an increase in the quarterly dividend of 16.67% to 70¢ per share. All shareholders of record on August 8 will receive the new dividend on August 29.

Cboe Global Markets (CBOE)

Founded in 1973 and headquartered in Chicago, Illinois, CBOE operates as an options exchange in the United States. The company operates in five segments: Options, U.S. Equities, Futures, European Equities, and Global FX. CBOE was formerly known as CBOE Holdings, Inc. and changed its name to Cboe Global Markets, Inc. in October 2017.

On July 31, the board of directors declared a quarterly dividend of 36¢ per share. The new dividend represents an increase of 16.13%. The dividend is payable on September 13 to shareholders of record on August 30.

BB&T (BBT)

BBT is a financial holding company of Branch Bank. Based in Winston-Salem, North Carolina, the company operates in 15 states and Washington, D.C., offering a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products, and services. BBT was founded in 1872.

The company announced a quarterly DIV increase of 11.11% to 45¢ per share. The dividend is payable on September 3 to shareholders of record on August 14. BBT will trade ex-dividend on August 13.

NewMarket (NEU)

Founded in 1887 and headquartered in Richmond, Virginia, NEU is a holding company that operates businesses involving petroleum additives. The company offers lubricant additives for use in various vehicle and industrial applications. NEU has operations in the United States, Canada, Europe, the Asia Pacific, India, Latin America, and the Middle East.

On August 1, the board of directors approved an increase to the regular quarterly dividend from 175¢ per share to $1.90 per share, an increase of 8.57%. The dividend is payable on October 1 to shareholders of record on September 16.

South State (SSB)

South State Corporation operates as the bank holding company for South State Bank, which provides retail and commercial banking services, mortgage lending services, trust and wealth management, and consumer finance loans to customers in South Carolina, North Carolina, Georgia, and Virginia. SSB was founded in 1933 and is headquartered in Columbia, South Carolina.

On August 29, the board of directors declared a quarterly dividend of 43¢ per share. The new dividend represents an increase of 7.50%. The dividend is payable on August 16 to shareholders of record on August 9. The stock will trade ex-dividend on August 8.

Illinois Tool Works (ITW)

Founded in 1912 and headquartered in Glenview, Illinois, ITW is a diversified, global company that manufactures and sells industrial products and equipment worldwide. ITW operates through seven segments: Automotive OEM; Test & Measurement and Electronics; Food Equipment; Polymers & Fluids; Welding; Construction Products; and Specialty Products.

On Friday, August 2, ITW increased its quarterly dividend to $1.07 per share, an increase of 7.00%. The dividend is payable on October 9 to shareholders of record on September 30.

Scotts Miracle-Gro (SMG)

SMG manufactures, markets, and sells branded consumer lawn and garden care products worldwide. The company offers its products to home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, and food and drug stores. SMG was founded in 1868 and is headquartered in Marysville, Ohio.

On August 1, the board of directors approved an increase to the regular quarterly dividend from 55¢ per share to 58¢ per share, an increase of 5.45%. The dividend is payable on September 10 to shareholders of record on August 27.

Arbor Realty Trust (ABR)

ABR invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets. The company primarily invests in real estate-related bridge and mezzanine loans, as well as real estate-related notes and various mortgage-related securities. ABR was founded in 2003 and is headquartered in Uniondale, New York.

The board of directors of ABR has declared a quarterly dividend of 29¢ per share. The new dividend is 3.57% above the prior dividend of 28¢ per share. The dividend is payable on September 3 to shareholders of record on August 15. The stock will trade ex-dividend on August 14.

Dover (DOV)

Founded in 1947 and headquartered in Downers Grove, Illinois, DOV manufactures and sells a range of equipment and components, specialty systems, software and digital solutions, and support services in the United States and internationally. DOV operates through four business segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment.

The company announced a quarterly DIV increase of 2.08% to 49¢ per share. The quarterly dividend will be paid on September 16 to shareholders of record on August 30. The ex-dividend date is August 29.

Please note that I'm not recommending any of these stocks. Readers should do their own research on these companies before buying shares.

Below, I'm including charts from F.A.S.T. Graphs for three of this week's dividend raisers, CSL, MSCI, and ITW.

In these charts, the black line represents the share price, and the blue line represents the calculated P/E multiple at which the market has tended to value the stock over time. The orange line is the primary valuation reference line. It is based on one of three valuation formulas depending on the earnings growth rate achieved over the time frame in question. (The Adjusted Earnings Growth Rate represents the slope of the orange line in the chart).

CSL's price line (black) is above the primary valuation line (orange) and above the stock's normal P/E ratio (blue). The stock is trading at a premium to fair value. An investment in CSL in January 2010 would have returned 16.6% on an annualized basis (with dividends included).

MSCI's price line is above the stock's normal P/E ratio and above the primary valuation line. The stock is trading at a premium to fair value. An investment in MSCI in January 2010 would have returned 22.7% on an annualized basis (with dividends included).

ITW's price line is above the primary valuation line and at the stock's normal P/E ratio. The stock is trading at about fair value. An investment in ITW in January 2010 would have returned 14.2% on an annualized basis (with dividends included).

Upcoming Ex-Dividend Dates

As a bonus, here is a summary of available ex-dividend dates for the next two weeks. You must own a stock before its ex-dividend date to be eligible to receive the next dividend.

The table is sorted by Ticker, and as before, Next Div is annualized. Please note that the table presents ex-dividend dates of stocks in the Industrials, Materials, and Financials sectors only. See the upcoming Part 2 for ex-dividend dates of the remaining stocks.

Summary of Upcoming Ex-Dividend Dates: August 6-19, 2019

Company

Ticker

Yield

Recent

Price

Yrs

5-Yr

DGR

Next

Div.

Ex-Div

Date

Pay- able

Date

Arbor Realty Trust

ABR

9.43%

$12.30

8

14.40%

$1.16

08/14

09/03

Applied Industrial Technologies

AIT

2.22%

$55.82

10

5.50%

$1.24

08/14

08/30

Boeing

BA

2.48%

$331.06

8

28.70%

$8.22

08/08

09/06

BB&T

BBT

3.80%

$47.37

9

10.50%

$1.80

08/13

09/03

Berkshire Hills Bancorp

BHLB

3.09%

$29.81

5

4.10%

$0.92

08/07

08/22

BOK Financial

BOKF

2.60%

$76.99

14

4.30%

$2.00

08/09

08/27

Cohen & Steers

CNS

2.85%

$50.44

10

9.50%

$1.44

08/09

08/22

Columbia Banking System

COLB

3.25%

$34.46

9

19.50%

$1.12

08/06

08/21

Carlisle

CSL

1.46%

$137.09

42

12.90%

$2.00

08/19

09/03

Donaldson

DCI

1.79%

$46.80

33

8.40%

$0.84

08/12

08/29

First Interstate BancSystem

FIBK

3.22%

$38.52

10

15.70%

$1.24

08/07

08/21

Great Western Bancorp

GWB

3.94%

$30.48

5

N/A

$1.20

08/08

08/23

W.W. Grainger

GWW

2.14%

$268.83

48

8.30%

$5.76

08/09

09/01

Heritage Financial

HFWA

2.87%

$26.50

9

17.60%

$0.76

08/07

08/22

Home Bancshares

HOMB

2.88%

$18.06

9

26.00%

$0.52

08/13

09/04

Honeywell International

HON

2.02%

$162.01

8

12.70%

$3.28

08/15

09/06

International Paper

IP

4.98%

$40.20

9

9.30%

$2.00

08/14

09/16

Investors Bancorp

ISBC

3.99%

$11.02

7

37.10%

$0.44

08/08

08/23

Invesco

IVZ

7.22%

$17.17

10

7.00%

$1.24

08/14

09/03

Main Street Capital

MAIN

6.01%

$40.90

9

4.30%

$2.46

08/19

09/16

Moelis

MC

6.01%

$33.26

6

N/A

$2.00

08/08

09/27

Mobile Mini

MINI

3.55%

$30.97

6

N/A

$1.10

08/13

08/28

MSCI

MSCI

1.30%

$209.24

5

N/A

$2.72

08/15

08/30

Neenah

NP

2.95%

$61.08

9

18.60%

$1.80

08/15

09/04

Oshkosh

OSK

1.44%

$75.01

6

45.90%

$1.08

08/16

09/03

PACCAR

PCAR

1.99%

$64.43

9

6.40%

$1.28

08/13

09/04

Provident Financial Services

PFS

3.92%

$23.44

9

7.90%

$0.92

08/14

08/30

PPG Industries

PPG

1.84%

$110.96

48

9.00%

$2.04

08/09

09/12

Ryder System

R

4.64%

$48.23

15

10.30%

$2.24

08/16

09/20

Reinsurance Group of America

RGA

1.90%

$147.42

11

15.30%

$2.80

08/07

08/29

Rockwell Automation

ROK

2.57%

$150.80

9

11.80%

$3.88

08/09

09/10

Rollins

ROL

1.31%

$32.15

17

18.50%

$0.42

08/08

09/10

Reliance Steel & Aluminum

RS

2.28%

$96.64

9

9.70%

$2.20

08/15

09/06

Sandy Spring Bancorp

SASR

3.47%

$34.56

9

11.40%

$1.20

08/13

08/21

Selective Insurance

SIGI

1.04%

$77.01

5

7.30%

$0.80

08/14

09/03

Sonoco Products

SON

2.97%

$57.92

37

5.70%

$1.72

08/08

09/10

South State

SSB

2.31%

$74.35

8

13.30%

$1.72

08/08

08/16

Terex

TEX

1.63%

$27.01

7

51.60%

$0.44

08/09

09/19

United Technologies

UTX

2.34%

$125.75

25

5.30%

$2.94

08/15

09/10

Washington Federal

WAFD

2.43%

$34.57

9

14.20%

$0.84

08/08

08/23

Wells Fargo

WFC

4.42%

$46.14

9

7.40%

$2.04

08/08

09/01

WestRock

WRK

5.17%

$35.17

10

26.90%

$1.82

08/08

08/20

WSFS Financial

WSFS

1.19%

$40.50

6

21.30%

$0.48

08/07

08/22

Wintrust Financial

WTFC

1.51%

$66.21

6

33.40%

$1.00

08/07

08/22

Zions Bancorporation

ZION

3.30%

$41.18

7

51.60%

$1.36

08/14

08/22

Thanks for reading and happy investing!

Disclosure: I am/we are long ITW. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.